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On January 1, 2016, Jason Company Issued $5 Million of 10-Year

Question 87

Multiple Choice

On January 1, 2016, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided: On January 1, 2016, Jason Company issued $5 million of 10-year bonds at a 10% coupon interest rate to be paid annually. The following present value factors have been provided: Calculate the issuance price if the market rate of interest is 12%. A) $4,427,500. B) $4,477,500. C) $4,435,000. D) $5,000,000. Calculate the issuance price if the market rate of interest is 12%.


A) $4,427,500.
B) $4,477,500.
C) $4,435,000.
D) $5,000,000.

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